Why 3-row electric vehicles are so in demand

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Why 3-row electric vehicles are so in demand

What could really move the needle on electric vehicle sales? Three-row SUVs and minivans, according to some industry experts.

Americans are clearly enamored with large trucks and SUVs, and families are increasingly asking for a daily hauler that can be taken everywhere, ****** the carbon emissions.

“The three-row electric vehicle market is so important for EV sales in the U.S.,” Ed Kim, president and chief analyst of AutoPacific, told ABC News. “Family-age consumers are open to EVs and they finally have a product that meets their needs.”

The market for a three-row electric SUV has been limited up until now, and Tesla’s Model X has received complaints for its cramped rear-seating. More models are soon on their way to dealer showrooms.

Customers who pre-ordered their Volvo EX90 ($80K), the Swedish brand’s new flagship EV, will take delivery next month. Rivian’s second-generation R1S three-row SUV ($75,900) is receiving praise for its handling and updated tech and Cadillac unveiled the Vistiq ($78,790) last week, which accelerates from 0 to 60 in 3.7 seconds and makes 615 horsepower. Cadillac also has the upcoming Escalade IQ ($127,000), which could compete for sales with the Lucid Gravity ($94,900).

Kim noted that these new models could finally sway mainstream drivers to buy a battery-powered vehicle.

“Automakers knew it would be a tricky transition … and the EV market stands to resume its strong rate of growth with these vehicles,” he argued.

Three-row electric SUVs are already stealing sales from gas-powered SUVs. The R1S was the 11th top-selling EV nameplate (22,000 units) as of September followed by the Kia EV9 (16,000), which launched in October 2023.

“These are pretty strong sales for those models,” noted Kim. “This is a lucrative area that will be tremendously important.”

PHOTO: Kia’s EV9 electric SUV comes in six- and seven-seat configurations and offers up to 20.2 cubic feet of cargo space. (Kia)

Kim expects sales of three-row electric SUVs to climb higher, with the Volvo EX90 adding to the mix. The large SUV, with its minimalist Swedish design and advanced tech, would appeal to consumers who are seeking luxury, unique styling and a more eco-friendly lifestyle.

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“The EX90 is one of our most important vehicles,” Gary Kalsaria, head of future cars for Volvo Cars USA, told ABC News. “It’s built on our all-new platform in Charleston, South Carolina. Production has already started and customer deliveries start later this year, with preorders far exceeding demand.”

PHOTO: Volvo’s flagship EX90 electric SUV launched this summer. (Volvo)

The SUV, which can be configured with seating for six or seven, gets 310 miles of range on one charge and hustles from 0 to 60 mph in 4.7 seconds, according to Volvo. It took five years to bring the EX90 to market, Kalsaria said, and it’s loaded with so much tech, which has attracted a key demographic for automakers: 30- to 40-year-olds.

“Your phone is your key — that’s all you need,” he said. “The EX90 is one of the most technologically advanced cars.”

It may not be a hulking SUV, but the Volkswagen ID. Buzz, a modern take on the classic Microbus, ticks a lot of boxes for consumers looking to go electric. The electric minivan is roomy, airy, has endless nooks and crannies and is the most conspicuous EV on the market right now.

The EPA-estimated range is 234 miles for the rear-wheel drive model and 231 miles for the AWD version.

“The ID. Buzz will absolutely be something that consumers will look at,” said Kim. “It does everything a three-row SUV does and more.”

PHOTO: The ID. Buzz minivan makes more sense to ‘haul’ passengers than an SUV, according to Autopian co-founder Jason Torchinsky. (Volkswagon)

Jason Torchinsky, co-founder of the Autopian, said wealthy boomers who have fond memories of the 70s Microbus will likely buy the $60,000 minivan.

“It’s very charming looking, drives great and the old problems with the old bus — it was loud, small and smelly — is not an issue now,” he told ABC News. “The ID. Buzz is quick, quiet and has a very comfortable interior.”

Torchinsky said the ID. Buzz’s range may be a factor, however, for those who regularly go on road trips.

“Families are probably looking at and shopping based on range,” he said, adding that more affordable models in the three-row segment are a must for cost-conscious drivers.

“We need down-market vehicles that regular people can afford,” Torchinsky said.

Mike Austin, executive editor at Road & Track, said fast charging reliability and inexpensive models are what consumers are seeking in an electric vehicle.

“People who are wealthy may buy a three-row electric SUV,” he told ABC News. “EVs are generally higher priced and are an emotional purchase.”

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Mark Gilles, a Volkswagen spokesperson, said the company has seen solid interest from consumers for the ID. Buzz, which launched in Europe in 2022 with two rows.

“We had 230,000-plus handraisers,” he told ABC News. “Our research showed that only 3% of intenders were coming from minivans and that the rest were coming from SUVs: 28% from full-size SUVs and 57% from mid-size SUVs.”

Gilles chalked up the minivan’s “coolness” factor as another reason why Americans would consider the ID. Buzz over the three-row competition. Plus, it offers more cargo space than larger models like the Kia EV9 and GM Suburban, a sought-after internal combustion SUV.

“The Buzz has 145 cubic feet of cargo space with the rear seats removed and 42 inches of rear-seat legroom,” he said. “The vehicles will be difficult to find initially in places where Volkswagen and EV sales are strong.”

Kim, who lives in Southern California, said he is already seeing a long line of electric three-row SUVs at his daughter’s school drop-off lane.

“Three-row SUVs are selling well, even with gas-powered engines,” he said. “You need additional seats for carpools and to schlep other kids around.”

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